New formulations and valid inequalities for a bilevel pricing problem

Consider the problem of maximizing the toll revenue collected on a multi-commodity transportation network. This fits a bilevel framework where a leader sets tolls, while users respond by selecting cheapest paths to their destination. We propose novel formulations of the problem, together with valid inequalities yielding improved algorithms.

• Type: Journal
• Year: 2008
• Where: ORL
• Authors: Sophie Dewez, Martine Labbé, Patrice Marcotte, Gilles Savard
• Keywords: Bilevel Framework, Cheapest Paths, Multi-commodity Transportation Network, ORL 2008